BioPharma financing has bucked the trend during the global pandemic, posting some of the strongest growth for decades. So why is 2020 the year of the Biotech IPO?
There have been 49 Biotech IPOs completed globally this year (up to early August, ’20), raising $12.2 billion. To put this in context, $8.9Bn was generated in 2019 as a whole. June ‘20 alone closed 15 IPOs, raising $5Bn… amidst a backdrop of a global pandemic, the working population tentatively exiting COVID lock downs, many people still working from home and with recession looming.
So, has the market reacted to the need for a robust life science landscape when there are exceptional health circumstances? Well… yes! Companies such as Vir Biotechnology Inc, Beigene Ltd and PTC Therapeutics have raised huge capital, all working on COVID-19 candidates, accounting for 40% of the total raised.
Life Science providers, specialising in reagents and devices, including Novacyt, Oxford Nanopore Technologies and QuantumDx have posted tremendous growth and developed new products on the back of COVID testing. The market has changed and the brave and insightful are creating technologies to improve our understanding of this infectious disease and help to bring it under control. The market has shown that now is the time to back the growth of BioPharma, especially for those looking at current and post COVID growth.
Get in touch with Grovelands if you are going through this exciting growth phase, we are making a tangible difference in resourcing for BioPharma clients who are scaling up.